The number of cars sold in the country soared by a massive 114 per cent to 24,918 units in July 2021 on a year-on-year (YoY) basis due to decline in mark-up rate for auto financing coupled with a reduction in car prices announced in budget 2020-21 (FY21).
According to data released by the Pakistan Automotive Manufacturers Association (PAMA) on Wednesday, car sales figure stood at 11,659 units in July 2020.
In a report, Topline Securities analyst Umair Naseer said that if dispatches of Lucky Motor Corporation (non-member of PAMA) are included, then the amount of total car sales in July 2021 would stand at approximately 27,000, an increase of 105pc YoY and 75pc month-on-month (MoM).
“To recall, the government had announced reliefs and tax cuts for automobile consumers in the federal budget 2021-22 which resulted in across the board reduction in car prices,” he said. “As a result, customers held back there purchases till July 2021.”
A report from Arif Habib Limited stated that triple digit growth in sales volume of automobiles was witnessed due to low policy rate as auto financing increased by Rs97 billion during the previous fiscal year.
It added that rapid economic growth also helped lift the sales figure.
“Government efforts to provide relief to the common man became evident in July’s sales numbers as the leadership reduced sales tax on cars having engine capacity of below 1,000cc along with a reduction in the federal excise duty resulting in a decline in car prices,” it said.
